According to SFAS 158 and SFAS 132(R), a company with a defined benefit pension plan must disclose in the notes to its financial statements all of the following except

  1. The funded status of its pension plan with the amounts recognized in the balance sheet showing separately the assets, current liabilities, and noncurrent liabilities recognized.
  2. Rates for assumed discount rate, rate of compensation increase, and expected long-term rate of return on plan assets.
  3. A reconciliation of the accrued or prepaid pension cost reported in its balance sheet with the pension expense reported in its income statement.
  4. The recognized amount of the net periodic benefit cost with the components shown separately.

The following information pertains to Foster Co.’s defined benefit postretirement plan for the year 2006.


Service cost


Benefit payment


Interest on the accumulated postretirement benefit obligation


Unrecognized transition obligation (to be amortized over twenty years)


Foster Co.’s 2006 net periodic postretirement benefit cost was

  1. $205,000
  2. $150,000
  3. $ 95,000
  4. $285,000